The latest Glenigan data paints a challenging picture for the UK housebuilding market, with private housing starts falling 34% year-on-year, underlining the continued slowdown across residential construction.
While much of the decline has been driven by the volume housebuilding sector, the figures also reflect wider pressures affecting the construction industry. Developers continue to face high build costs, cautious consumer confidence and ongoing planning and regulatory challenges, all of which are delaying new projects from reaching site.
For businesses operating in the custom and self-build market, however, the picture is more nuanced.
Although overall housing starts are down, demand from individuals looking to commission or build their own homes remains relatively resilient. Custom and self-build projects are often less reliant on the large speculative development model, allowing them to continue progressing where land, finance and planning align.
The current market may also create opportunities. As larger developers slow land acquisition and construction programmes, more sites could become available for smaller builders, serviced plot providers and custom build enablers. Homeowners looking to create long-term value rather than move into the mainstream new-build market may also continue to see self-build as an attractive option.
Nevertheless, the sector is not immune to wider industry headwinds. Rising material costs, skills shortages and planning delays remain significant barriers, while access to development finance continues to influence project viability.
The latest figures reinforce the need for policies that support housing delivery across all sectors. Alongside measures to boost mainstream housebuilding, industry bodies continue to argue that expanding opportunities for custom and self-build could help diversify housing supply, increase SME builder activity and deliver more homes tailored to individual needs.
